Placemakr, a flexible-use multifamily and hospitality operator, announced $65 million in new funding today, bringing its total capital raised to $350 million. This announcement coincides with the appointment of Timothy G. Franzen, former president of Graduate Hotels, to the company’s board of directors. Highland Capital Partners, Harbert Growth Partners, Bernstein Management Corporation, Camber Creek, Gaw Capital USA, and other venture capital and major real estate investors contributed to Placemakr’s property operations model. In addition to securing outside investments, Franzen’s appointment as Chief Development Officer marks an important milestone in the organization’s growth. In this role, Franzen is in charge of leading the company’s efforts to increase inventory under management through partnerships with major real estate owners and developers across the country.
Placemakr is a real estate investor and flex-use hospitality and residential operator. Its technologically advanced operating platform enables the company to blur the line between hospitality and home, delivering the best of both in a single building. Placemakr’s curated spaces in hand-picked neighborhoods give guests and residents the option of staying for a night, a year, or anything in between.
Placemakr will use this funding to increase its property acquisitions and developer partnerships across the United States in order to meet consumer demand for apartment-style hotels, short-term rentals, and flexible-living accommodations. Placemakr has raised over $350 million in capital since its inception, managed over $1 billion in real estate assets on its platform, operated 1 million+ room nights, and serviced over $100 million in bookings since the launch of COVID, indicating accelerating market demand for this new asset class from consumers and property owners alike. The company will seek to expand its partnerships and geographic footprint in order to further establish flex-use property as a mainstay asset class in commercial real estate.
Tim Franzen joins Placemakr after serving as President of Graduate Hotels, where he co-authored the business plan and oversaw the brand’s portfolio growth for the first six years. During his 26-year career, Franzen oversaw the acquisition of 34 hotels totaling over 7,000 keys, as well as the construction of eight hotels totaling over 2,000 keys, including a Westin, an InterContinental, and six Graduate Hotels. He will use this experience in his new role at Placemakr to support the company’s expansion and inventory growth through partnerships with third-party owners.
Placemakr’s tech-enabled platform enables multifamily developers and owners to transform existing properties into mixed-use spaces, effectively combining multifamily and hospitality uses in one building. This announcement follows the opening of two new Placemakr properties, Placemakr Wedgewood Houston and Whyhotel by Placemakr, Columbia. Furthermore, Placemakr recently announced a collaboration with Bernstein Management Corporation and Urban Atlantic to purchase an office building on K Street in Washington, DC and convert it into a hotel-apartment hybrid property. These collaborations are emblematic of the overall shift in real estate, bringing new functions to underutilized existing space in the heart of our city centers. This round of funding and the announcement of new hires will fuel future innovation and growth in 2023 and beyond.
